Renault on Thursday proposed a 7.5% rise in its budget for wage increases in France in 2023, the highest since 1992, three union sources told Reuters.

The increase, in response to employees' concerns about soaring prices, breaks down into a 5% budget increase for general and individual raises, as well as +2.5% for additional measures such as the purchasing power bonus, reserved for employees earning up to three SMICs, the sources added.

For the group's operators, technicians and supervisors, who account for around two-thirds of the workforce, the budget increase represents a net increase of 110 euros per month, they added.

The agreement, announced on Thursday evening at the end of a marathon day of discussions as part of the Compulsory Annual Negotiations (NAO), is now subject to signature by the unions, but will apply even without.

(Gilles Guillaume reports, written by Jean Terzian)